How can I increase the cadastral income from my property?

Cadastral income is a tax assessment of a property's rental value of a property. In France, it is used to calculate property and housing taxes. For real estate investors, an increase in cadastral income can be beneficial, as it can reduce the tax burden and increase rental yields.

Understanding the calculation of cadastral income in France.

Cadastral income is calculated by the French tax authorities. It is based on the rental value of the property, which is itself assessed according to various criteria, such as :

• the surface area of the property ;
• its location ;
• general condition ;
• its comfort level ;
• its year of construction.

The calculation of cadastral income also takes into account other factors, such as the amenities, facilities and public services available in the neighborhood where the property is located.

The benefits of increased cadastral income.

Increasing cadastral income offers multiple advantages for real estate investors. First and foremost, it reduces the tax burden, as property tax and council tax are calculated on the basis of cadastral income. It can also increase rental yields by enabling higher rents to be set, thereby improving the profitability of the real estate investment. A higher cadastral income can also increase the resale value of the property, making it more attractive to potential buyers. Finally, improving the overall quality of the property through increased cadastral income can improve tenant satisfaction and reduce the costs associated with finding new tenants and managing tenant relations. In short, increasing cadastral income is a wise choice for real estate investors.

How to increase the cadastral income from your property.

There are several strategies for increasing the cadastral income from your property in France. Here are some of the most common options:

• Renovation: by renovating the property, you can increase its rental value, which can translate into an increase in cadastral income. It's important to focus on renovations that have a significant impact on rental value, such as kitchen or bathroom renovations.
• Extensions: adding extra rooms or living spaces can also increase the rental value of the property, which can translate into an increase in cadastral income. It is important to comply with current town planning regulations to avoid any legal problems.
• Renting out outdoor spaces: if the property has a garden, terrace or balcony, it may be possible to rent them out separately, which can increase the cadastral income.
• Declarations of work: declaring work to the authorities can lead to an increase in cadastral income, as it signals to the tax authorities that work has been carried out to improve the property's rental value.
• Request for reassessment: you can ask the tax authorities to reassess the cadastral income of a property, by providing tangible evidence of an improvement in its rental value.

It's important to remember that all these strategies can have associated costs, and it's important to carefully calculate the costs and benefits of each before making a decision.

 

In conclusion, cadastral income is an important consideration for real estate investors in France. Increasing cadastral income can offer tax benefits and higher rental yields, but it often requires investment of time and money. By understanding the calculation of cadastral income, the benefits of increasing it and the different strategies for achieving it, property investors can make informed decisions to maximize the value of their real estate investment.